PUNE, India, Jan. 31, 2012 (GLOBE NEWSWIRE) -- PRGX Global, Inc. (Nasdaq:PRGX), the world's leading provider of recovery audit services and the pioneer in Profit DiscoveryTM, announced today in a press conference that based on the success of its first full year of execution from its PRGX India subsidiary, the company plans to continue its investments in India.
Over the last 5 years, PRGX has recovered an average of one billion dollars per year on behalf of its clients from overpayments made to vendors. While recovery audit is a common practice in retail, driven by the enormous volume of vendor transactions and the complexities of purchasing arrangements with vendors, other high-transaction volume industries are also adopting this best practice. Given that recovery auditors are typically paid on a contingency fee basis, i.e., a percentage of findings, the value proposition is very attractive. Also, since recoveries are from prior financial periods, recovered amounts frequently drop directly to the bottom lines of PRGX's clients as straight profit in the period recovered.
Since 2009, PRGX has expanded its offering from recovery audit, also referred to as profit recovery, to Profit Discovery, a suite of analytics and advisory services that leverage the "big data" and process insights gathered during the recovery audit process to help clients improve their entire source-to-settle function.
Based on continued strong demand for PRGX's Profit Discovery services, and on the successful migration of select audit, business analytics, information technology and other client-facing and support services to the Pune-based center, PRGX expects that its India-based headcount will double by the end of 2013.
"Our Pune center is the quintessential office-of-the future for PRGX," said Romil Bahl, PRGX president and CEO. "The combination of audit, analytics and advisory skills that we have attracted in this key geography is proving highly effective in enabling PRGX's vision of finding more routes to profit for our clients. The future of 'big data analytics' is bright given our clients' growing volumes of information, and the need to make better decisions faster, and our India team will help lead this charge for PRGX."
"Our India-based team has also played a key role in streamlining and standardizing our core recovery audit processes," continued Bahl. "Clients we serve through a combination of on-shore and off-shore resources have seen impressive productivity increases, either through expedited recoveries or through the identification of new claim concepts."
Going forward, PRGX plans to expand its capabilities in India to serve a growing number of global, as well as local India-based, clients.
"While the debate continues as to whether or not foreign companies, many of whom are PRGX clients, will be allowed to open retail operations in India, local retailers have started to show signs of interest in recovery audit," said Tushar Sachdev, PRGX India vice president. "PRGX India stands ready to serve local retailers in addition to the existing multinational clients we already service."
PRGX India Private Ltd. was incorporated on April 9, 2010 with a mandate of tapping the skilled talent pool in India to deliver value to PRGX's customers, with a specific focus on supporting and extending PRGX's analytics capabilities and services. PRGX India's first office, in Pune, was formally inaugurated on July 13, 2010. PRGX India currently employs 140 professionals, including application developers, auditors, help-desk staff and sales support resources.
About PRGX Global, Inc.
Headquartered in Atlanta, Georgia, PRGX Global, Inc. is the world's leading provider of recovery audit services. With approximately 1,500 employees, the company operates and serves clients in more than 30 countries and provides its services to over 75% of the top 30 global retailers. PRGX is also pioneering Profit Discovery, a unique combination of audit, analytics and advisory services that improves client financial performance. For additional information, please visit PRGX at www.prgx.com.
Forward-Looking Statements
In addition to historical information, this press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include both implied and express statements regarding the company's financial condition, growth strategy, business development efforts, service offerings, service delivery models and the expected benefits to the company from investments in its India operation. Such forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from the historical results or from any results expressed or implied by such forward-looking statements. Risks that could affect the company's future performance include revenues that do not meet expectations or justify costs incurred, the company's ability to develop material sources of new revenue in addition to revenues from its core accounts payable recovery audit services, the company's ability to successfully expand in India and other new geographic markets, changes in the market for the company's services, the company's ability to retain and attract qualified personnel, changes to Medicare and Medicaid recovery audit contractor programs, the company's ability to integrate recent and future acquisitions, uncertainty in the credit markets, the company's ability to maintain compliance with its financial covenants, client bankruptcies, loss of major clients, and other risks generally applicable to the company's business. For a discussion of other risk factors that may impact the company's business, please see the company's filings with the Securities and Exchange Commission, including its Form 10-K filed on March 16, 2011. The company disclaims any obligation or duty to update or modify these forward-looking statements.